Layer 1 blockchain Fantom is pushing the idea of a “safer memecoin” by setting aside $6.5 million worth of native FTM (FTM) tokens to reward developers trying to get a piece of the nearly $50 billion sector. there is.
Fantom Foundation CEO Michael Kong told Cointelegraph that technical and non-technical measures would be taken to create “an environment where people can launch what we call ‘safer memecoins'” and to ensure the project does not become “just an outright scam.” He said he would like to introduce .
Solana and Coinbase’s Ethereum Layer-2 Base have witnessed much of the recent memecoin trading frenzy, with Solana’s volume surpassing that of Ethereum at its peak in March. It also surpassed trading volume.
However, Cointelegraph’s Magazine found that one in six memecoins on Base were fraudulent, and at least a dozen large-scale meme-based projects that raised a total of $26.7 million on Solana were quickly abandoned by their creators.
To attract Memecoin traders to Fantom, Kong announced at the MemeGlobal event in Sydney on April 30 that the Fantom Foundation has set up a 10 million Fantom (FTM) prize pool worth $6.5 million for the Memecoin team.
“The memecoin phenomenon that exists now is a way for us to gain a lot of customers because we’ve seen success on other chains, and we want to replicate that success,” Kong said.
“As a chain, our focus is to grow the chain as much as possible, which ultimately comes down to customer acquisition,” Kong added.
“In the end, what matters is what the customer wants. If your customers want DeFi, give them DeFi. NFTs? Give them NFTs, and in the case of memecoins, give them memecoins, or at least provide an environment where people can develop memecoins in a secure way.”
Kong described the successful memecoin as a “democratic launch that opens up a lot of tokens to offer to the community” that is “not too focused on a few whales or a few bags.”
The foundation’s co-founder, Andre Cronje, proposed steps for a secure memecoin in early April, which included having memecoin developers issue tokens with the Pantone Foundation as co-controller of the token startup’s liquidity.
Related: Crypto VC sees ‘new class’ of profitable memecoins this cycle.
Cronje also proposed a token supply split of 5% to the team and 10% to marketing, locked in a multi-signature wallet that would require at least one foundation member as a co-signer.
The remaining 85% will be placed into a liquidity pool (LP) linked to FTM, with the foundation investing 100,000 FTM (equivalent to approximately $65,000 at current prices).
“Once the FTM of LP tokens reaches at least 2,000,000 FTM, the 100,000 FTM (5%) originally provided will be removed to cover the initial cost and the remaining LP will be burned,” Cronje wrote.
According to DefiLlama, Fantom is the 38th largest blockchain network with a total value locked (TVL) of $108.3 million. For comparison, Solana and Base are the fourth and sixth largest in TVL, respectively.
magazine: 1 in 6 new Base Meme coins is a scam, and 91% have vulnerabilities.